Gold Price Forecast: Rising US real yields to increase the downside pressure on XAU/USD – Credit Suisse


Rising real yields should put pressure on gold. In the view of strategists at Credit Suisse, the precious metal may be in the throes of constructing a large top.

Resistance at $1,877 is expected to cap

“Our base case remains that we are close to a peak in inflation expectations and 10-year US Real Yields are in the process of building a large and important bearish ‘wedge’ reversal. If our view is correct, it would suggest gold may in fact be forming a large and significant top.”

“The immediate risk is seen lower for support next at $1,759, removal of which can see a retest of long-term pivotal support at $1,691/77. Beneath this latter area at any stage would in our view mark a major top.”

“Resistance at $1,877 is now expected to cap but only above $1,917 would suggest we are seeing an important turn higher.”

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops back below 1.1300 amid coronavirus fears

EUR/USD retreats to 1.1280 during Monday’s initial Asian session, following the heaviest daily jump of 2021. The coronavirus variant, dubbed as ‘Omicron’, shook markets and the US dollar on Friday before the greenback started nursing losses a few hours back.

EUR/USD News

GBP/USD: Bears eager for a covid trigger to move in towards 1.3200

GBP/USD, which has been tugged and pulled over recent weeks between central bank themes, now faces the risk of a covid contagion risk for the foreseeable future since the latest coronavirus threat.

GBP/USD News

Gold looks to extend rebound amid renewed coronavirus fears Premium

With the sharp upsurge witnessed in US Treasury bond yields, gold broke below the previous week’s trading range and continued to push lower in the first half of the week. Buyers managed to hold XAU/USD above several key SMAs. 

Gold News

SafeMoon price gears up for upcoming V2 launch with drop in circulating token supply

Ahead of the SafeMoon V2 upgrade, there is a drop in the supply of circulating tokens. SAFEMOON price plunged nearly 75% after hitting an all-time high seven months ago. The petition to rename Jazz arena to “SafeMoon arena” gathered 4,878 signatures from the community. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures